- The ongoing legal confrontation between Ripple and the SEC may be approaching a resolution amid continuing discussions between the two sides.
- The new SEC leadership has not yet finalized the case due to specific requests from Ripple’s legal representatives.
- If XRP manages to maintain the $2.00 support level, it could challenge the upper resistance of $2.72 within a rectangular channel.
On Wednesday, Ripple’s XRP experienced a 2% increase following speculation that the company might reach an agreement with the Securities and Exchange Commission (SEC) to conclude their four-year dispute.
Ripple’s conflict with the SEC may soon come to a close
Ripple appears to be on the brink of resolving its lengthy legal feud with the SEC, as reported by an insider who referenced two unnamed sources.
This development follows the recent cessation of enforcement actions against several cryptocurrency firms—including Coinbase, Robinhood, and Kraken—by the newly appointed SEC administration under acting Chair Mark Uyeda.
Many believe that the agency could arrive at a similar resolution with Ripple, despite the previous SEC’s leadership appealing Judge Torres’s decision from last August. Judge Torres significantly reduced the SEC’s demanded penalty from $1.95 billion to $125 million, along with a permanent injunction that barred Ripple from selling XRP to institutional buyers.
The holdup in concluding the case is attributed to negotiations by Ripple’s legal team aimed at revising aspects of Judge Torres’s ruling, as the new SEC leadership is withdrawing from earlier legal actions against crypto entities amid ongoing regulatory reforms affecting digital assets within the agency and across the US. Consequently, it remains uncertain whether all aspects of Judge Torres’s ruling will be upheld in light of the new SEC’s regulatory stance.
Attorney James Murphy previously speculated similarly, suggesting that Ripple may be prolonging the SEC’s dismissal due to the unfavorable nature of the securities law violations and injunction ruling for the company.
“This is especially relevant if Ripple is contemplating a future exempt securities offering or IPO,” he mentioned in a post.
XRP might test $2.72 resistance if it sustains $2.00 support
In the last 24 hours, XRP experienced $11.10 million in futures liquidations, according to Coinglass data, with $5.63 million in long and $5.47 million in short positions liquidated.
The token, which is often used for remittances, rebounded near the key psychological level of $2.00 and is poised to test the upper resistance of a rectangular channel.
XRP/USDT daily chart
If XRP continues to retain support at $2.00, it could breach the channel’s resistance at $2.72 and make a run towards its seven-year peak of $3.40.
The Relative Strength Index (RSI) and Stochastic Oscillator (Stoch) are currently below their neutral levels but are trending upwards, suggesting that bearish momentum is diminishing.